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Home » Eaton CEO’s comments on data center demand are what investors want to hear
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Eaton CEO’s comments on data center demand are what investors want to hear

adminBy adminDecember 2, 2025No Comments3 Mins Read
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Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market update : Stocks are slightly higher on Tuesday in what’s been a mostly choppy session. Technology stocks are rebounding alongside bitcoin after Monday’s declines. We’re in a lighter period for corporate earnings, but conference season is in full swing, and we’re seeing stocks react to the updates (both good and bad) management teams are providing. Boeing was the biggest gainer in the S & P 500 after its CFO made some upbeat remarks about free cash flow, while Procter & Gamble slid after its CFO described a volatile US environment. We bought P & G shares into this weakness earlier today. Nvidia , Dover , Eli Lilly , and Eaton also presented on Tuesday. Big opportunity for AI stock: Eaton CEO Paulo Ruiz spoke earlier at the UBS Global Industrials and Transportation Conference. Data center demand was obviously a major talking point, and what we heard about it certainly made us feel good as we look forward to 2026. First off, management noted that orders are continuing to grow and are outpacing supply chain improvements and faster chip cycles. Secondly, Ruiz reiterated that the company’s pending acquisition of Boyd Corporation’s thermal business will increase Eaton’s dollar-per-megawatt exposure to about $3.4 to $3.5 million, up from the current $2.9 million. Given industry expectations of adding over 100GW of capacity over the next few years, that’s a market opportunity for Eaton in the area of $340 to $350 billion, which is pretty sizable for a company expected to do about $28 billion in revenue this year and clearly indicative of a long runway of growth ahead for the broader data center buildout. Up next: CrowdStrike , Marvell Technology , Okta , and American Eagle Outfitters report after the closing bell on Tuesday. Before the opening bell on Wednesday, we’ll hear from Macy’s and Dollar Tree . On the data side, we’ll see the ADP National Employment report, weekly mortgage applications, and the ISM Services Index. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.



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